By fraudulently misrepresenting a number of material facts,Sid induces Ty to enter into a contract for the sale of a warehouse.Sid also tells Ty that his commission is 6 percent,but their signed,written contract states "12 percent." In a dispute between Sid and Ty over this contract,the court may apply the parol evidence rule,which governs
A)contracts entered into by parolees.
B)contracts that are induced by fraud.
C)contracts that must be in writing to be enforceable.
D)the admissibility in court of oral evidence.

Question

Quizplus · Accepted Answer

The parol evidence rule governs the admissibility in court of oral evidence. This means, in a dispute over a written contract, the court will only consider the written terms of the contract and will not allow any prior or contemporaneous oral statements to contradict or modify those terms, unless there is an exception to the rule, such as fraud or mistake. In this scenario, Sid's fraudulent misrepresentation may be an exception to the parol evidence rule, allowing Ty to introduce evidence of the misrepresentation to prove that the contract was entered into under false pretenses. However, the fact that the signed, written contract states a commission rate of 12 percent would likely be upheld under the parol evidence rule.

By Fraudulently Misrepresenting a Number of Material Facts,Sid Induces Ty